Lars Rebien Sørensen, who chairs the Novo Nordisk Foundation, will join its board as an observer while the company seeks a new CEO. Sørensen, Novo Nordisk’s CEO from 2000 to 2016, is expected to be nominated for a seat on the board during an annual meeting in 2026.

Novo Nordisk A/S NVO shares lost 2.7% on Friday after a surprising announcement regarding changes to its executive leadership and board of directors. Per the press release, Lars Fruergaard Jørgensen will step down as CEO of Novo Nordisk following a mutual agreement with the company's board.

Novo Nordisk is parting ways with its CEO Lars Fruergaard Jørgensen after the two parties mutually agreed that a change of leadership was required amid fierce glucagon-like peptide 1 receptor agonists (GLP-1RA) market pressure from Eli Lilly.